Australia’s favourite asset class continues to motor along at a steady pace, with residential real estate recording growth of 0.4% in September, according to CoreLogic. 

Perth led the charge in September with a 1.9% growth, followed by Adelaide at 1.3%. Brisbane was next, posting just under 1% growth for the month, while Sydney continued its steady rise, remaining in positive territory. 

Though CoreLogic’s research shows an easing trend, regional housing markets remain in positive growth territory. The combined regionals index saw a 1.0% increase over the September quarter. Like the capital cities, regional areas in WA (+3.6%), SA (+2.3%), and Queensland (+2.0%) are driving growth in regional housing markets.

Meanwhile, spring listings coming onto the market are tracking 14% higher than a year ago nationally, according to data from Raine & Horne, as savvy property owners seek to take advantage of real estate’s almost two-year run of growth.  

More vendors choosing to list properties now makes sense on several levels, according to Angus Raine, Executive Chairman, Raine & Horne. “Spring is traditionally the peak season for real estate, as many vendors believe their properties show at their best during this time, and buyer demand remains strong, despite the persistence of the Reserve Bank in keeping interest rates at their current high levels.” According to Raine & Horne data, groups at open for inspections are higher than September 2023, and over 36% higher than two years ago.

According to Angus Raine, the immediate outlook for housing markets is for further growth. “With inflation heading in the right direction, a rate cut will eventually come sooner rather than later.

“The supply of new properties appears to be gridlocked due to several factors, including government red tape, lack of tradespeople, and higher building costs, which will underpin real estate values in the long term.

Angus continues, “While I’d like to see stamp duty tax breaks considered by state governments to encourage empty nesters or people over the age of 70 to sell up family homes that are now superfluous to needs to help address supply issues, I’m encouraged that the Federal Government appears to be stepping back from talk of proposed changes to property tax incentives, such as the 50% capital gains discount for investment properties and adjustments to negative gearing. 

“However, after the challenges our industry faced during the 2016 and 2019 federal elections, we must stay vigilant. It would be a bold move to change the current investment property taxation regime.” 

For an obligation-free appraisal of your home’s or investment property’s value for a spring sale, contact your local Raine & Horne office today.